© Reuters. The dollar fell against its rivals on Wednesday.
Investing.com – The dollar fell against its rivals Wednesday, pressured by strong gains in the euro and sterling, amid growing investor optimism for a Brexit deal.
The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, fell by 0.30% to 95.07.
Sterling and the euro kept a lid on the greenback as Brexit negotiators continued to hint at progress on a Brexit deal.
EU Brexit negotiator Michel Barnier said that Britain and the EU have agreed on much of the withdrawal agreement ahead of a summit of all the bloc’s 28 national leaders next week. That eased investor fears that Britain would leave the European Union in March without a trade agreement, which some experts say would hurt the country’s economy.
GBP/USD rose 0.49% to $1.3207, while EUR/USD rose 0.41% to $1.1538.
“There is more optimism that they will find some agreement between Britain and (the) European Union before Brexit,” said Steve Englander, global head of G10 FX research at Standard Chartered (LON:STAN) bank in New York.
Mixed data on wholesale inflation, meanwhile, did little to help stem downside momentum in the greenback.
The Labor Department said on Wednesday its producer price index for final demand increased 0.2% last month after slipping 0.1% in the prior month. In the 12 months through September, however, the PPI rose 2.6%, below economists’ estimates for a 2.8% increase.
Elsewhere, concerns over global growth and trade tensions between the U.S and China stoked demand for safe-haven yen, heaping further pressure on the greenback.
The IMF lowered its global economic growth forecasts Tuesday and warned that trade wars and rising import tariffs would weigh on commerce.
USD/JPY fell 0.25% to Y112.68.
USD/CAD rose 0.39% to C$1.2998 as falling oil prices pressured the the oil-price sensitive loonie.
Forex – Dollar Downed by Sharp Rise in Sterling, Euro
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